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Total comeback to Russian market is impossible, IDIS expert


https://www.ipn.md/en/total-comeback-to-russian-market-is-impossible-idis-expert-7966_1036486.html

After the numerous restrictions introduced by Russia since 2005, the Moldovan companies reoriented towards the EU, which accounts today for 63% of our exports. Meanwhile, there is a slow change in the CIS. Moldovan exporters cannot regain their position on the Russian markets, as other countries with more competitive products have taken their place. The opinion was voiced by Viorel Chivriga, program director at IDIS Viitorul, during the “15 minutes of economic realism” broadcast, IPN reports.

The data regarding exports and imports in the first semester of 2017 shows that Moldova is returning to the position it held in 2012 and 2013. According to Chivriga, the EU Association Agreement had a positive impact on Moldova’s external trade. “We have about 1400 companies successfully exporting to the EU market, over 2100 tariff headings, some of which are fully covered in accordance with export quotas. The quality of services provided by state institutions also improved. For example, the Customs Service eliminated some export barriers, canceling over 140 useless regulations that hindered entrepreneurs. Currently, the customs management is better and revenue is increasing. The tax service also improved its capacities and remedied some chronic issues”, said Chivriga.

The application of the Association Agreement’s provisions is also causing other changes. The national legislation is being harmonized with the community acquis, modern technical regulations are applied, over 14,400 European and international standards have been implemented, while 11,600 obsolete Moldovan ones have been annulled. In addition to this, there are opportunities to influence exports by improving the real sector of economy, which has stabilized a little, says the expert.

He added that the agricultural growth marks a break with the tradition where a good year was preceded by a bad year with calamities and zero growth. The service sector, especially the IT, is also improving. “If we look at regions, we can see a growth of exports to the EU from Gagauzia and from the left bank of the Nistru. Moreover, the Gagauz authorities are embracing the change of paradigm in foreign trade, according to which every market is important if you want to survive and develop your business”, explained Chivriga.

The expert suggested two ways to boost our exports. The first is attracting investments and the second is intensely promoting and marketing Moldovan products and goods. “It’s a deficiency and we must be careful when we tackle it. We have competitive goods, but we need policies to promote them abroad”, he concluded.

The proadcast is produced by IDIS Viitorul in partnership with Radio Free Europe.